NEW YORK - The economic recovery remains disappointingly slow with unemployment too high, two top Federal Reserve officials said on Thursday, as they discussed the role of the U.S. central bank in spurring a stronger economy.
Federal Reserve Chairman Ben Bernanke, in remarks at a town hall event held by the Fed, commented on the pain still felt by many Americans, but spoke only in generalities about the Fed's commitment to stimulate growth.
The president of the Cleveland Fed, Sandra Pianalto, said growth is currently too slow to significantly reduce the "stubbornly high" unemployment rate. She said she is currently assessing the effectiveness of the tools that the central bank could employ if the Fed were to decide the economic recovery needs an extra boost.
"Even though our economy is stabilized and growing, clearly it is still a very difficult time for many Americans," Bernanke said.
"The unemployment rate is still almost 10 percent, inflation is quite low, and the Federal Reserve has the responsibility ... to do our part to help the economy recover and make sure that jobs come back to the United States," he said.
Pianalto, who addressed an event in New York, in addition to highlighting the high unemployment rate, said inflation was "too low."
She said inflation is below the 2 percent level that she sees as consistent with the Fed's longer-term objective of price stability, and said it is likely to stay low through 2011.
Low inflation is considered a concern, because it could run the risk of tipping into deflation, a vicious cycle of downward prices and slowing economic activity.
Pianalto said the Fed has options if it decides a further boost to the economy is needed.
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